Deal of the Month: £9.2m funding package to support manufacturer’s growth
A DEAL showing the full range of assistance available from Birmingham’s professional services community combined with support for one of its most important industrial sectors is the choice of July’s Deal of the Month by TheBusinessDesk.com.
Birmingham-based Hills Numberplates is the world’s third-largest manufacturer of numberplates but it is ambitious to grow this further.
Last month its secured a £9.2m funding package from a range of funders to support its aims.
Its potential was recognised by Finance Birmingham, Birmingham City Council, NatWest Corporate and Commercial Finance and RBS Invoice Finance, which all collaborated on a wide ranging support package.
Finance Birmingham has provided £3m in loans, made up of £2m from the Regional Growth Fund’s mezzanine fund and £1m from Birmingham City Council’s loan fund.
RBS Invoice Finance has provided £3.7m and NatWest £2.5m.
In addition, Freeths, Mazars, Irwin Mitchell and Pinsent Masons all advised on the deal.
Also worthy of note was the investment of £21m by Palatine Private Equity in residential property specialist Westleigh Partnerships – the private equity firm’s first transaction from its Birmingham office which launched last December.
Leicestershire-based Westleight, which also has an office in Solihull, achieved sales of around £100m, with EBITDA of more than £9m during the financial year to March 31, 2016. In line with this growing demand, the company anticipates sales will rise to more than £165m by 2018.
The deal was originated and led by Phil Burns, managing partner at Clearwater International and Austin Moore acted as legal advisers to Westleigh.
Palatine was advised by Catalyst Corporate Finance, Gateley and RSM with due diligence provided by KPMG, CIL, GK Strategy and JLT. Debt facilities were provided by European Capital and AIB.
The second in a trio of Chinese investments into West Midlands football clubs was also completed last month with Fosun International acquiring Wolverhampton Wanderers from Redrow owner Steve Morgan in a deal thought to be worth around £45m.
